Our gross sales are up 40%

"Since we changed to NESTLE'S Brand Products, our gross sales have increased over 40% and our net profits have increased dramatically. The best NESTLE product we have added is the Coffee-Mate line of liquid creamers"

Says Robert Benkelman, owner of Lee's Vending in Lakeport, CA, sharing his Foodservice Rewards success story. Got vending?

Don't get stuck in the Shrinking Middle

1) Be the low cost producer or 2) differentiate with product leadership or 3) focus on customer intimacy or die.

This article succinctly illustrates the dilemma facing today's marketers. Just replace the name "SYSCO" for Wal*Mart when reading.

CHICAGO--(BUSINESS WIRE)--Sept. 12, 2006--Despite significant investment, innovation among foodservice manufacturers has been increasingly ineffective. "Foodservice manufacturers have relied too heavily on 'copycat' items, line extensions and package modifications and have not focused on real innovation," states Bob Goldin, Technomic Executive Vice President and Co-Director of Pacesetters. "There is a clear need for fresh thinking and new approaches."

So, if you are not differentiating on product innovation and are not the low cost producer (playing the distributor private label game) the only option is to focus on customer intimacy:

1) Identify your best street customers. 2) Communicate regularly and cost-effecitvely. 3) Reward their new purchasing behavior with something other than discounts. Sound familiar?

Foodservice.com Expanded Partnership

Our partnership with Foodservice.com is growing: See the new Foodservice Rewards primary navigation button on their home page. Dave Smania, Founder, will be joining us at the November sponsor meeting to highlight other benefits of the expanded partnership including the ability to rotate your Foodservice Rewards promotion banners through their site for increased operator exposure at no additional charge.

Big Mike to focus on independents

Please welcome Mike Zoladkiewicz, Marketing Manager, to the Coalition Marketing team.

"Big Mike" or "Z" as he is affectionately known, has worked in foodservice as an operator and as a broker for the past 7 years and will now have his plate full driving Distributor and DSR participation in Foodservice Rewards.

His hobbies include cooking, football, and his 5 month old daughter, Abby.

How to measure Customer Lifetime Value?

Ultimately, it's down to your company's definition, but perhaps this article and related links will help.

We're helping sponsors interpret their data by tracking the average number of cases redeemed per quarter for participants in a high-value segment and calculating the likely profit contribution for the year.

From there it's easy to set up promotions to the remaining non-buyers in the segment using a cost-per-customer-acquired approach that virtually guarantees a positive ROI.

Ask your Coalition Manager (A.K.A. the easy button) for details.

Ever wonder if operators read email?

We have a family restaurant that features fresh fried foods such as squash and chicken tenders. We were using Sysco Fry-On and the oil was failing after 3-4 days. The distributor tried everything from giving us a filter machine (we already had our own) to stainless steel screens for catching crumbs.

I saw your offer for offer for extra bonus points and decided to give Bunge a try. It's great! It lasts longer (at least 7 days) and the end product is consistantly better. Ruth Bowers, Owner, City Café, Mount Holly, NC

N.B. How else would your brand have reached this operator? City Cafe is a typical family restaurant that no one representing the manufacturer calls on and the MA did everything in his power to keep a private label sale rather than sell a better performing product...

Having a tough time retaining employees?

Try this strategy:
"We use the rewards for door prizes at company functions and as a morale boost for employee of the month programs. This program is great, it's an easy way to reward your employees without the additional expense."

Anthony J. Campolo, President, Four Seasons Vending

On a related note, we're losing Charles Parla, Marketing Manager, to General Mills. It's bittersweet - he'll be missed at BI - and probably give us heck as our new client contact at the Mills. Send him congratulations.

The power of Convergence

Here's a nice example of multiple sponsors' promotions converging in the same issue of Foodservice Director.

You never know what motivates your operators

Just wanted to drop a line and let you know what a fantastic program this is. Everything is top notch!!!

I'm happy with the products that we order to get the coupons... The merchandise... Delivery in a timely manner and even the return policy.

I recently selected a chain saw since it is Hurricane Season here in The Florida Keys. It is defective and I need to return it. My request was handled with speed, care and kindness ! Thank you... It seems like it's FREE and that makes it WONDERFUL !!

Gloria Teague, Owner, Bob's Bunz, Islamorada, FL

Global foodservice to grow by 1/3rd in 5 years

This global forecast in the UK's Catersearch explains why we'll continue expanding the Foodservice Rewards program in Europe and shortly thereafter, Asia/Pacific. Sponsors, don't hesitate to introduce us to to your international counterparts :-)

SYSCO Watching

Just one insight from this analyst's report: "SYY holds close to 15% consolidated market share. However, we find it interesting that SYY actually does business with over 40% of the industry’s approximate 900,000 “purchase points” in North America, which means the market is still quite fragmented. The company also estimates that even its best customers only use SYY for 40% of purchases."

Tip 'o the hat to Pete Leavitt of Barber Foods for supplying.